
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/T36KKEMZKBN7LFA5QARLJ6JYBA-820x429.jpg" alt="" class="wp-image-497783" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/T36KKEMZKBN7LFA5QARLJ6JYBA-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/T36KKEMZKBN7LFA5QARLJ6JYBA-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/T36KKEMZKBN7LFA5QARLJ6JYBA-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/T36KKEMZKBN7LFA5QARLJ6JYBA-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/T36KKEMZKBN7LFA5QARLJ6JYBA-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/T36KKEMZKBN7LFA5QARLJ6JYBA.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



<p>GABORONE, June 18 (Reuters)&nbsp;&#8211;&nbsp;Botswana&#8217;s economy may fall short of the government&#8217;s 4.2% growth target for this year, a senior central bank official said on Tuesday, citing global and domestic constraints.</p>



<p>Finance minister Peggy Serame made the projection for a 4.2% increase in GDP in a budget speech in February, saying the government expected growth to accelerate from 2023 due to an improved performance in the diamond sector. Gross domestic product grew 2.7% in 2023.</p>



<p>However, Botswana&#8217;s mining sector, which is dominated by diamonds, is still struggling, reflecting sluggish market conditions globally.</p>



<p>Sales at Debswana Diamond Company, a joint venture between the southern African country&#8217;s government and Anglo American&#8217;s De Beers unit, were down about 48% year-on-year in the first quarter of 2024.</p>



<p>&#8220;From what we have seen in the first half of the year, unfavourable global economic conditions &#8230; as well as domestic structural constraints, one would expect that we are unlikely to attain the projected economic growth,&#8221; Innocent Molalapata, the central bank&#8217;s director of research and financial stability, told an economic briefing.</p>



<p>&#8220;A downward revision of the growth target might therefore be required,&#8221; Molalapata said, adding that mining output contracted roughly 27% in the first quarter.</p>



<p>The Bank of Botswana tends not to give precise GDP growth forecasts, leaving that to the finance ministry.</p>



<p>The International Monetary Fund forecasts Botswana&#8217;s economy will grow 3.6% in 2024.</p>



<p>(Reporting by Brian Benza; Editing by Tannur Anders, Alexander Winning and Susan Fenton)</p>


T36KKEMZKBN7LFA5QARLJ6JYBA

Botswana may fall short of 4.2% growth target, cenbank official says


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZJ7VVLBOAZNETDZF34KQ7NPIJ4-820x547.jpg" alt="" class="wp-image-497768" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZJ7VVLBOAZNETDZF34KQ7NPIJ4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZJ7VVLBOAZNETDZF34KQ7NPIJ4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZJ7VVLBOAZNETDZF34KQ7NPIJ4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZJ7VVLBOAZNETDZF34KQ7NPIJ4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZJ7VVLBOAZNETDZF34KQ7NPIJ4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZJ7VVLBOAZNETDZF34KQ7NPIJ4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: AI (Artificial Intelligence) letters are placed on  computer motherboard in this illustration taken June 23, 2023. REUTERS/Dado Ruvic/Illustration//File Photo</figcaption></figure>



<p>LAGOS/NAIROBI/JOHANNESBURG, June 17 (Thomson Reuters Foundation)&nbsp;&#8211;&nbsp;When the Nigerian government announced plans in April to develop a multilingual AI tool to boost digital inclusion across the West African nation, 28-year-old computer science student Lwasinam Lenham Dilli was thrilled.</p>



<p>Dilli had struggled to scrape datasets from the internet to build a large language model (LLM), used to power AI chatbots, in his native Hausa language as part of his final-year project at university.</p>



<p>&#8220;I needed texts in English and their corresponding translation in Hausa but I couldn&#8217;t get anything online, (there was) no clean data,&#8221; Dilli told the Thomson Reuters Foundation.</p>



<p>&#8220;(Creating local language LLMs) is a way to ensure that our local dialects and languages will not be forgotten or left out of the AI ecosystem,&#8221; he added.</p>



<p>The world has been swept up in a whirlwind of AI mania, with tools such as OpenAI&#8217;s ChatGPT, Meta&#8217;s Llama 2, and Mistral AI captivating millions globally with their ability to generate human-like text.</p>



<p>But for many tech-savvy Africans, the excitement has been tempered by a frustrating reality: when languages like Hausa, Amharic, or Kinyarwanda are entered into the chat, many of these advanced systems falter, often producing nonsensical responses.</p>



<p>Technology experts warn the lack of LLMs in African languages will lead to the exclusion of millions of people on the continent, increasing both the digital and economic divide.</p>



<p>The Nigerian government-led initiative to develop a multilingual LLM aims to level the playing field.</p>



<p>&#8220;The LLM will be trained on five low-resource languages and accented English to ensure stronger language representation &#8230; for development of artificial intelligence solutions,&#8221; said Nigeria&#8217;s Digital Economy Minister Bosun Tijani in April.</p>



<p>The government will partner with Nigerian AI startups, and local data will be collected by volunteers who are fluent in any of five Nigerian languages: Yoruba, Hausa, Igbo, Ibibio, and West African lingua franca—Pidgin.</p>



<p>To build the model, the project will also draw on the expertise of more than 7,000 fellows from Nigeria&#8217;s tech talent programme &#8211; a government scheme to train three million people in skills such as coding and programming.</p>



<p>Silas Adekunle, co-founder of Awarri, an AI startup that is part of the initiative, said building a nuanced AI tool that understood Nigeria&#8217;s unique language and cultural landscape presented many challenges.</p>



<p>&#8220;We have so many different accents and languages, and this (LLM) will enable many people and developers to build products that leverage AI but are for the Nigerian market,&#8221; said Adekunle.</p>



<p>&#8220;The scale of the project, especially with limited resources, has required us to be creative in how we train the model, gather the data, compute and label what we have.&#8221;</p>



<h2 class="wp-block-heading" id="h-closing-the-ai-language-gap">CLOSING THE AI LANGUAGE GAP</h2>



<p>Africa is home to more than 2,000 languages spoken across 54 countries, according to the United Nations Educational, Scientific and Cultural Organization (UNESCO).</p>



<p>However, the majority of African languages remain underrepresented on the internet. English dominates the digital space, accounting for around 50% of all websites, followed by Spanish, German, Japanese, and French.</p>



<p>Along with the Nigerian government initiative, there are also a small but growing number of African startups rising to the challenge of developing AI tools in languages like Swahili, Amharic, Zulu and Sesotho.</p>



<p>In Kenya, for instance, health tech firm Jacaranda Health has pioneered the first LLM operating in Swahili to improve maternal healthcare in East Africa.</p>



<p>Built on Meta&#8217;s Llama 3 system, UlizaLlama (AskLlama) aims to refine Jacaranda Health&#8217;s SMS service for low-income Swahili-speaking expectant mothers who have queries ranging from dietary concerns and fetal movement to exercise during pregnancy.</p>



<p>The platform currently provides pre-written automated responses, but once UlizaLlama is integrated by the end of June, it will tailor responses to individual needs, offering more detailed pregnancy guidance and emergency support.</p>



<p>&#8220;A lot of these expectant moms can&#8217;t just do a Google search. UlizaLlama&#8217;s goal is to make sure that we get them the accurate answers in the fastest possible time,&#8221; Jay Patel, Jacaranda Health&#8217;s director of technology, told the Thomson Reuters Foundation.</p>



<p>&#8220;We&#8217;re shooting for about 85% accuracy to start with and a faster response time. At the moment, it takes a few minutes to respond, but we are hoping to get that down to less than a minute in the future.&#8221;</p>



<p>In South Africa, the Masakhane initiative is using open-source machine learning to translate African languages.</p>



<p>Lelapa AI, a South African AI research lab, has pioneered VulaVula – a for-profit language processing tool that translates, transcribes and analyses languages in English, Afrikaans, Zulu and Sesotho.</p>



<h2 class="wp-block-heading" id="h-data-scarcity-ethical-concerns">DATA SCARCITY, ETHICAL CONCERNS</h2>



<p>But AI experts say building LLMs in African languages poses significant challenges, ranging from availability of data to ethical concerns over consent, compensation and copyright.</p>



<p>Many African languages are low-resource languages, meaning there is a scarcity of data to train these models effectively &#8211; unlike high-resource languages such as English or French.</p>



<p>Michael Michie, co-founder of Everse Technology Africa, an AI startup building intelligence into data protection and privacy, said collecting the data needed to train LLMs also raised ethical questions.</p>



<p>In many African communities, oral tradition predominates, and certain communities may not be interested in sharing their language to train LLMs and this should be respected.</p>



<p>&#8220;There are currently no regulations or laws in African countries that address issues related to consent, privacy and compensation to communities when collecting data to train AI tools &#8211; this needs to be addressed,&#8221; said Michie.</p>



<p>&#8220;There are questions of who owns the language and who benefits. There needs to be guidelines to prevent exploitation and ensure the development of these LLMs benefits the people they are meant to serve,&#8221; he added.</p>



<p>Open-source initiatives like Creative Commons, which allow creators to legally share their work with specified conditions like ensuring attribution and non-commercial use, are also not a perfect solution, said some AI experts.</p>



<p>&#8220;At the moment there&#8217;s this push of saying everything should just be under Creative Commons,&#8221; said Vukosi Marivate, associate professor of computer science at the University of Pretoria and co-founder of Lelapa AI.</p>



<p>But if everything is open source, it may be harder to properly reimburse and acknowledge the original contributors to these language models, he said.</p>



<p>&#8220;A lot of people are working on LLMs now because of the prestige, that&#8217;s where the money is, but we need to make sure that our languages are actually being taken care of.&#8221;</p>



<p>(Reporting by Bukola Adebayo, Nita Bhalla and Kim Harrisberg; Editing by Clar Ni Chonghaile)</p>


FILE PHOTO: Illustration shows AI (Artificial Intelligence) letters and computer motherboard

From Swahili to Zulu, African techies develop AI language tools


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



<p>JOHANNESBURG, June 18 (Reuters)&nbsp;&#8211;&nbsp;The following scheduled economic events, company announcement, equity and currency market moves may affect South African markets on Tuesday.</p>



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



<p>The Johannesburg Stock Exchange will release data on foreigners&#8217; buying and selling of bonds and stocks during the previous week.</p>



<p>South Africa&#8217;s government will hold its weekly auction of long-term bonds.</p>



<h2 class="wp-block-heading" id="h-companies">COMPANIES</h2>



<p>Telkom, South Africa&#8217;s third-biggest telecom company, said on Tuesday its headline earnings jumped 201% in the full-year to March.</p>



<h2 class="wp-block-heading" id="h-south-african-markets">SOUTH AFRICAN MARKETS</h2>



<p>South Africa&#8217;s rand gained on Friday after the Democratic Alliance said a deal had been struck with the African National Congress to form a unity government.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed around 0.7% stronger. South Africa&#8217;s benchmark 2030 government bond was flat at 10.125%.</p>



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



<p>Asian stocks tracked Wall Street higher on Tuesday ahead of a chorus of Federal Reserve officials due to speak later in the day, while the Australian dollar held steady after its central bank offered few surprises in its policy decision.</p>



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



<p>The S&amp;P 500 and Nasdaq scored record closing highs on Monday as technology shares rallied on enthusiasm over artificial intelligence ahead of this week&#8217;s economic data and Federal Reserve officials&#8217; speeches that could shed light on monetary policy.</p>



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



<p>Gold prices edged higher on Tuesday as Treasury yields eased, with market participants awaiting U.S. data and comments from Federal Reserve officials for more clarity on the central bank&#8217;s roadmap for interest rate cuts. </p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



<p>BUSINESS DAY</p>



<p>&#8211; Surge of optimism boosts stocks as cabinet haggling begins</p>



<p>(Compiled by Tannur Anders)</p>


istockphoto-1076949610-612×612-1

South African Markets – Factors to watch on June 18


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



<p>June 18 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Tuesday.</p>



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



<p>Ivory Coast&#8217;s President Alassane Ouattara is scheduled to address the upper and lower houses of parliament, raising expectations he may clarify whether he plans to contest the 2025 election.</p>



<p>Kenyan citizens are expected to gather at the parliament for a protest, dubbed &#8220;Occupy Parliament&#8221;, to implore lawmakers to reject a proposed finance law, called Finance Bill 2024.</p>



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



<p>Asian stocks tracked Wall Street higher on Tuesday ahead of a chorus of Federal Reserve officials due to speak later in the day, while the Australian dollar held steady and domestic shares rose ahead of the country&#8217;s interest rate decision.</p>



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



<p>Oil prices edged down in Asian trade on Tuesday, after posting gains in the previous session, as markets remained cautious about global demand growth prospects amid expectations of stronger supplies.</p>



<h2 class="wp-block-heading" id="h-cocoa-ghana">COCOA GHANA</h2>



<p>Ghana will start purchases from the cocoa light crop on Friday, maintaining the price it pays farmers at 33,120 cedi ($2,215) per metric ton, the country&#8217;s Cocobod regulator said on Sunday.</p>



<h2 class="wp-block-heading" id="h-cocoa-ivory-coast">COCOA IVORY COAST</h2>



<p>Mainly above-average rains last week in most of Ivory Coast&#8217;s major cocoa regions augur well for a strong finish of the April-to-September mid-crop, farmers said on Monday.</p>



<p>((Compiled by Nairobi Newsroom))</p>


World map with charts and graphs as symbols of global finance

African Markets – Factors to watch on June 18


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-820x547.jpg" alt="ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions" class="wp-image-365501" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1-696x464.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/03/shutterstock_392452534_ZAR-spread_cu-1024x683-1.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions</figcaption></figure>



<p>JOHANNESBURG, June 18 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand was slightly stronger in early trade on Tuesday, building on gains after unity government members were confirmed last week and ahead of talks by U.S. Federal Reserve officials later in the day.</p>



<p>At 0641 GMT, the rand traded at 18.2350 against the dollar, about 0.15% stronger than its previous close.</p>



<p>South Africa&#8217;s National Assembly sat for the first time on Friday after last month&#8217;s election. Cyril Ramaphosa of the African National Congress (ANC) was re-elected as president.</p>



<p>Five political parties have signed up to join a government of national unity after the ANC lost its majority in the vote, including the pro-business Democratic Alliance which is favoured by markets.</p>



<p>&#8220;The formation of a government of national unity is being liked by investors as the new government sets a platform for accelerated infrastructure and other reforms, to get the economy back on track after years of low growth and high unemployment,&#8221; Rand Merchant Bank analysts said in a research note.</p>



<p>Traders will on Tuesday look for hints from Fed officials on the future interest rate path of the world&#8217;s biggest economy.</p>



<p>Like other emerging market economies, the risk-sensitive rand often takes cues from global factors.</p>



<p>South Africa&#8217;s benchmark 2030 government bond was stronger in early deals, with the yield down 3 basis points to 10.095%.</p>



<p>(Reporting by Tannur Anders; Editing by Andrew Heavens)</p>


ArcelorMittal South Africa fined R3.64 million over hydrogen sulfide emissions

South African rand extends gains after unity government confirmed, Fed talks ahead


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1024" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1.jpg" alt="" class="wp-image-497710" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1.jpg 1024w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-300x150.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-820x410.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-160x80.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/AFREXIMBANK-HQ-scaled-1-768x384.jpg 768w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Photo: via Flickr</figcaption></figure>



<p>LONDON, (Reuters) &#8211; Some of Africa&#8217;s smaller multilateral development banks, including the Africa Export-Import Bank (Afrexim) and the Trade and Development Bank (TDB), could be stripped of their Preferred Credit Status, JPMorgan analysts warned.</p>



<p>Preferred Creditor Status (PCS) is a widely accepted principle under which MDBs are given priority for repayment of debt when a country or company they have lent to experiences financial stress.</p>



<p>It is at the heart of why the banks are able to provide cheaper financing to developing countries. However, larger MDBs have suggested that some smaller regional ones, especially in Africa, may not provide enough concessional loans to justify the privilege.</p>



<p>It is something that has been source of tension in debt restructurings taking place in Zambia, Ghana and Malawi where there is uncertainty about what happens to the loans Afrexim, TDB and others have provided to the countries.</p>



<p>JPMorgan&#8217;s analysts said in a research note on Monday that it, &#8220;looks more likely to us now that PCS gets tested negatively in a few sovereign restructurings for smaller MDBs.&#8221;</p>



<p>&#8220;This could result in their claims being treated as part of overall restructured debt,&#8221; adding that if that was the case it would raise the riskiness of their bonds.</p>



<p>They estimated that TDB’s exposure to the governments of Malawi and Zambia was likely to be included in both countries debt restructurings.</p>



<p>Afrexim’s exposure to Ghana and Malawi&#8217;s governments is also at risk, although this is less certain with Ghana&#8217;s big official sector creditors reportedly wanting Afrexim to take losses but the government also approaching the IMF in support of the bank.&#8221;Taking this risk and banks’ loan concentrations in mind and also bond valuations, we position underweight Afrexim and TDB,&#8221; JPMorgan&#8217;s analysts said, underweight effectively being a recommendation to sell or avoid a bond.</p>



<p>Afrexim primarily makes direct loans to central banks, commercial banks and central governments. Its big shareholders include Nigeria&#8217;s government and Egypt&#8217;s central bank which both have a 15% stake but it has some private shareholders too.</p>



<p>TDB focuses on trade and project financing in Eastern and Southern Africa. The African Development Bank has a 9% shareholding. Egypt, Ethiopia, Kenya and Tanzania have 5-7% each and, like Afrexim, it has some private ownership as well.</p>



<p>(Reporting by Marc Jones; Editing by Sharon Singleton)</p>


AFREXIMBANK-HQ-scaled-1

Smaller African development banks Preferred Credit Status under threat, JPMorgan warns


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EGXY342QSRKIDPZSVUXAGVBH4I-820x547.jpg" alt="" class="wp-image-496612" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EGXY342QSRKIDPZSVUXAGVBH4I-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EGXY342QSRKIDPZSVUXAGVBH4I-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EGXY342QSRKIDPZSVUXAGVBH4I-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EGXY342QSRKIDPZSVUXAGVBH4I-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EGXY342QSRKIDPZSVUXAGVBH4I-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/EGXY342QSRKIDPZSVUXAGVBH4I-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view of a hall in the Cape Town International Convention Center (CTICC), which has been designated a precinct of parliament, ahead of the first sitting of the National Assembly following elections in Cape Town, South Africa, June 14, 2024. REUTERS/Nic Bothma</figcaption></figure>



<p>CAPE TOWN, South Africa, June 14 (Reuters) &#8211; The African National Congress and its largest rival, the white-led, pro-business Democratic Alliance, agreed on Friday to work together in South Africa&#8217;s new government of national unity, a step change after 30 years of ANC majority rule.</p>



<p>Once unthinkable, the deal between two sharply antagonistic parties is the most momentous political shift in South Africa since Nelson Mandela led the ANC to victory in the 1994 elections that marked the end of apartheid.</p>



<p>&#8220;Today, South Africa is a better country than it was yesterday. For the first time since 1994, we&#8217;ve embarked on a peaceful and democratic transfer of power to a new government that will be different from the previous one,&#8221; DA leader John Steenhuisen said in a televised address.</p>



<p>&#8220;From today, the DA will co-govern the Republic of South Africa in a spirit of unity and collaboration,&#8221; he said, adding that multi-party government was the &#8220;new normal&#8221;.</p>



<p>The ANC lost its majority for the first time in an election on May 29 and has spent two weeks locked in intensive behind-the-scenes talks with other parties, which came down to the wire on Friday morning as the new parliament was convening.</p>



<p>The DA&#8217;s entry into national government is a big moment for a country still processing the legacy of the racist colonial and apartheid regimes. The party has struggled to shake off its image as a defender of rich white people and convince a broad spectrum of South Africans that it reflects their aspirations.</p>



<p>Two smaller parties, the socially conservative Inkatha Freedom Party and the right-wing Patriotic Alliance, will also take part in the unity government, they said.</p>



<p>&#8220;Today marks the beginning of a new era where we put our differences aside and unite for the betterment of all South Africans,&#8221; said Sihle Zikalala, a member of the ANC&#8217;s governing body, in a post on X.</p>



<p>Meeting in a Cape Town convention centre because its permanent home was damaged by fire in 2022, the newly elected National Assembly began proceedings with the swearing-in of lawmakers. The chamber was then due to elect its speaker and deputy speaker,&nbsp;and the country&#8217;s president.</p>



<p>President Cyril Ramaphosa, the 71-year-old ANC leader, is expected to win a new term in office with support from the other parties in the unity government pact.</p>



<p>A DA source said the party would receive the post of deputy speaker of the National Assembly as part of the deal.</p>



<h2 class="wp-block-heading" id="h-investors-welcome-deal">INVESTORS WELCOME DEAL</h2>



<p>Long seen as unbeatable in national elections, the ANC lost support in recent years as voters wearied of persistently high levels of poverty, inequality and crime, rolling power cuts and corruption in party ranks.</p>



<p>The ANC won 159 of 400 seats in the National Assembly, while the DA got 87. The populist uMkhonto we Sizwe (MK) party led by former President Jacob Zuma has 58, the hard-left Economic Freedom Fighters 39 and the Inkatha Freedom Party 17.</p>



<p>The ANC&#8217;s central dilemma since the election has been whether to work with the DA, which investors like because of its free-market policies but is unpopular with ANC voters who see it as a defender of the privileged white minority&#8217;s interests.</p>



<p>The inclusion of the IFP, with its ethnic Zulu base, may help sweeten the DA pill for ANC voters. The Patriotic Alliance draws its support from the coloured (mixed-race) community.</p>



<p>The News24 website published details from a draft statement of intent it said had been circulated to party negotiators by ANC Secretary-General Fikile Mbalula. Reuters saw the document but could not immediately confirm its authenticity.</p>



<p>Among the &#8220;basic minimum programme of priorities&#8221; outlined in the document were rapid, inclusive and sustainable economic growth, the promotion of fixed capital investment and industrialisation, job creation, land reform, infrastructure development, structural reforms and fiscal sustainability.</p>



<p>London-based research firm Capital Economics said in a note that the prospect of a coalition involving the ANC and DA was being well received by investors because there was expected to be policy continuity or an acceleration of reforms.</p>



<p>It said another reason was that the EFF and MK, which it said had set out &#8220;radical agendas, including rapid land redistribution, widespread nationalisations and increased welfare support&#8221;, would be excluded from policymaking.</p>



<p>Zuma&#8217;s MK, new to the political scene, came a strong third in the election but alleged it was robbed of victory by vote-rigging, and is boycotting the new parliament.</p>



<p>The Constitutional Court rejected MK&#8217;s application to stop parliament sitting on grounds of fraud, saying it had no merit. The Independent Electoral Commission said the election was free and fair and other parties have accepted the results.</p>



<p>(Additional reporting by Alexander Winning, Tannur Anders, Bhargav Acharya and Sfundo Parakozov; Writing by Estelle Shirbo; Editing by Gareth Jones, William Maclean abd Timothy Heritage)</p>


First sitting of parliament in Cape Town

White-led DA party joins ANC in South African unity government


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



<p>JOHANNESBURG, June 14 (Reuters)&nbsp;&#8211;&nbsp;The following political and economic events, equity and currency market moves may affect South African markets on Friday.</p>



<h2 class="wp-block-heading" id="h-political-events">POLITICAL EVENTS</h2>



<p>South Africa&#8217;s National Assembly will hold its first sitting after last month&#8217;s election, where new lawmakers will be sworn in and the next president elected.</p>



<h2 class="wp-block-heading" id="h-economic-events">ECONOMIC EVENTS</h2>



<p>South Africa&#8217;s government will hold its weekly auction of inflation-linked bonds.</p>



<h2 class="wp-block-heading" id="h-south-african-markets">SOUTH AFRICAN MARKETS</h2>



<p>The South African rand edged lower on Thursday as talks to try to form a government of national unity continued.</p>



<p>On the stock market, the Top-40 index closed 1% lower.</p>



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



<p>Japanese shares rose on Friday, outperforming weaker Asian markets, and the yen slid broadly after the Bank of Japan said it would start trimming its huge bond purchases in the future, dashing some expectations it would begin the process sooner.</p>



<h2 class="wp-block-heading" id="h-wall-street">WALL STREET</h2>



<p>The S&amp;P 500 and Nasdaq registered record closing highs for a fourth session in a row on Thursday as technology shares extended their recent rally.</p>



<h2 class="wp-block-heading" id="h-gold">GOLD</h2>



<p>Gold prices edged up on Friday and were on course for their first weekly gain in four, as U.S. economic data indicated a softening of price pressures, fuelling optimism that a rate cut from the Federal Reserve might be forthcoming.</p>



<p>&#8211; &#8211; &#8211; &#8211;</p>



<p>Some of the main stories out in the South African press:</p>



<p>BUSINESS DAY</p>



<p>&#8211; S&amp;P says lack of consensus in ANC to govern with DA risks an unstable government</p>



<p>&#8211; ANC pushes to secure Ramaphosa&#8217;s re-election ahead of parliament sitting</p>



<p>(Compiled by Tannur Anders)</p>


South African Markets – Factors to watch on June 14


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



<p>NAIROBI, June 14 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Friday.</p>



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



<p>Asian stocks fell on Friday as investors pondered the outlook for U.S. rates after the Federal Reserve tempered its rate-cut views even as inflation came in softer than expected, while the yen was shaky before the Bank of Japan&#8217;s policy meeting.</p>



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



<p>Oil prices eased on Friday as markets evaluated the impact of U.S. interest rates staying higher for longer than anticipated, but crude benchmarks headed for their best week in more than two months after solid projections for crude and fuel demand.</p>



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



<p>The South African rand edged lower on Thursday as talks to try to form a government of national unity continued.</p>



<h2 class="wp-block-heading" id="h-africa-currencies">AFRICA CURRENCIES</h2>



<p>The Kenyan shilling is forecast to firm against the dollar over the next week to Thursday while Ghana&#8217;s cedi is expected to weaken and Zambia&#8217;s kwacha to hold steady, traders said.</p>



<h2 class="wp-block-heading" id="h-nigeria-world-bank">NIGERIA WORLD BANK</h2>



<p>The World Bank has approved a total of $2.25 billion loan for Nigeria to help stabilise its economy following reforms and scale up support for the poor, it said in a statement on Thursday.</p>



<h2 class="wp-block-heading" id="h-nigeria-dangote-refinery">NIGERIA DANGOTE REFINERY</h2>



<p>Nigerian billionaire Aliko Dangote says his petroleum refinery on the outskirts of Lagos owes $2.7 billion in loans taken out to help build the 650,000 barrels per day plant.</p>



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



<p>Kenya&#8217;s shilling was steady on Thursday and was expected to gain ground, helped by dollar inflows from the agriculture and tourism sectors, traders said.</p>



<h2 class="wp-block-heading" id="h-kenya-budget">KENYA BUDGET</h2>



<p>Kenya&#8217;s 2024/25 budget aims to tackle the country&#8217;s debt while protecting its fragile economic recovery, with growth estimated at 5.5% in 2024 and 2025, Finance Minister Njuguna Ndung&#8217;u said on Thursday.</p>



<h2 class="wp-block-heading" id="h-uganda-budget">UGANDA BUDGET</h2>



<p>Uganda hopes to limit rising debt by focusing on concessional borrowing and curbing commercial loans next fiscal year, its finance minister said on Thursday, after a credit rating downgrade last month.</p>



<h2 class="wp-block-heading" id="h-tanzania-budget">TANZANIA BUDGET</h2>



<p>Tanzania&#8217;s budget will rise 11.2% to 49.35 trillion Tanzanian shillings ($18.90 billion) in the 2024/25 financial year starting in July, largely aimed to help the government service its debts, the finance minister said on Thursday.</p>



<h2 class="wp-block-heading" id="h-burundi-budget">BURUNDI BUDGET</h2>



<p>Burundi&#8217;s budget will rise 15.9% to 4.4 trillion Burundi francs ($1.5 billion) in the 2024/25 financial year starting in July, largely because of the unfreezing of civil servants&#8217; salary bonuses, Finance Minister Audace Niyonzima said on Thursday.</p>



<h2 class="wp-block-heading" id="h-rwanda-politics">RWANDA POLITICS</h2>



<p>Rwanda has named statistics official Yusuf Murangwa as its new finance minister, Prime Minister Edouard Ngirente said, while the foreign minister will be Olivier Nduhungirehe, its ambassador to the Netherlands.</p>



<h2 class="wp-block-heading" id="h-ghana-debt">GHANA DEBT</h2>



<p>Ghana and its bondholders will restart talks next week to hash out a debt restructuring deal on $13 billion of international bonds, four sources told Reuters, on the heels of a deal finalised with official creditors earlier this week.</p>



<h2 class="wp-block-heading" id="h-ivory-coast-cocoa">IVORY COAST COCOA</h2>



<p>Ivory Coast&#8217;s cocoa regulator has suspended purchase and export of cocoa beans for the month of June, sources said on Thursday, in a bid to retain sufficient stock for local grinders to keep their factories running.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on June 14


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg" alt="" class="wp-image-423556" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/03/IQMT7SFA2RNQLAQHUEOA2VEMMQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Illustration photo shows a two-rand coin above a South African flag April 12, 2017.   REUTERS/Thomas White/Illustration</figcaption></figure>



<p>JOHANNESBURG, June 14 (Reuters) &#8211; The South African rand gained on Friday after local media reported that a deal had been struck between the African National Congress and the pro-business Democratic Alliance to form a unity government.</p>



<p>At 0946 GMT, the rand traded at 18.3850 against the dollar, around 0.3% stronger than its previous close.</p>



<p>The ANC, which lost its parliamentary majority in a May election, agreed to enter into a government of national unity with parties including the DA, the Inkatha Freedom Party and the Patriotic Alliance, public broadcaster SABC reported.</p>



<p>The ANC&#8217;s Cyril Ramaphosa is likely to be re-elected as the president.</p>



<p>A deal with the DA will be welcomed by investors, Capital Economics economist Jason Tuvey said in a note.</p>



<p>&#8220;If confirmed, President Ramaphosa&#8217;s broad policy agenda, centred around fiscal tightening and addressing infrastructure problems, is likely to remain intact. But the coalition is likely to prove fragile,&#8221; he said.</p>



<p>On the Johannesburg Stock Exchange, the blue-chip Top-40 index last traded up around 1%. South Africa&#8217;s benchmark 2030 government bond was down, with the yield up 4 basis point to 10.165%.</p>



<p>(Reporting by Tannur Anders; Editing by Gareth Jones)</p>


Illustration photo of South African rand

South African rand gains after reports ANC, DA struck unity government deal


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="518" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-820x518.jpg" alt="" class="wp-image-435757" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-820x518.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-300x190.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-768x485.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-1536x971.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XGW2VAJGGVKTZOIMO2U27VMREE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u presents the Government Budget for the 2023/24 fiscal year inside the Parliament building in Nairobi, Kenya June 15, 2023. REUTERS/Monicah Mwangi/File Photo</figcaption></figure>



<p>NAIROBI, June 13 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s 2024/25 budget aims to tackle the country&#8217;s debt while protecting its fragile economic recovery, with growth estimated at 5.5% in 2024 and 2025, Finance Minister Njuguna Ndung&#8217;u said on Thursday.</p>



<p>Presenting the budget in parliament, Ndung&#8217;u said the fiscal deficit was expected to be 3.3% of gross domestic product (GDP), compared with a revised deficit of 5.7% for 2023/24.</p>



<p>Economic growth is expected to be in line with the ministry&#8217;s expectation of 5.5% this year from 5.6% in 2023.</p>



<p>&#8220;Kenya&#8217;s economy is unwinding from layers of negative and persistent shocks,&#8221; Ndung&#8217;u said, citing the effects of pandemic, and climate change related events such as devastating floods in 2023 and 2024.</p>



<p>He said policy efforts have reduced the cost of living and created vibrancy in an economy that is showing signs of a strong recovery.</p>



<p>Kenya&#8217;s economy is largely driven by agriculture, manufacturing, transport and storage, financial and insurance services and real estate.</p>



<p>Ndung&#8217;u told journalists earlier on Thursday that the budget would put emphasis on policies needed to strengthen and to support the fragile growth and recovery.</p>



<p>&#8220;We want to make sure that we revive the economy so that it can generate jobs for the youth. We want to revive the economy so that we can pay our debt. We have been buffeted by that,&#8221; he said.</p>



<h2 class="wp-block-heading" id="h-debt-management">DEBT MANAGEMENT</h2>



<p>Kenya&#8217;s total public debt stands at an estimated 68% of GDP for fiscal 2023/24, and is expected to fall to 64.8% in 2024/25, according to the World Bank.</p>



<p>Ndung&#8217;u said total spending for the fiscal year 2024/35 is seen at 3.992 trillion Kenyan shillings ($31.19 billion). To finance the budget, Kenya aims to borrow 333.8 billion shillings from external sources, and 263.2 billion from the domestic market.</p>



<p>&#8220;The government will slow down uptake of new external commercial debt and undertake liability management operations through debt swaps and other innovative solutions,&#8221; he said.</p>



<p>The East African country sold a $1.5 billion international bond in February at a premium to fund the buyback of a large portion of a $2 billion bond maturing in June.</p>



<p>Before that, investors had feared Kenya might not be able to repay the bond due to its strained public finances.</p>



<p>Last week, parliament approved overall spending for the year at 4 trillion shillings, up from the 3.75 trillion shillings the minister presented last June for the 2023/24 year. That budget was later adjusted to 3.85 trillion shillings.</p>



<p>The 2024/25 budget will be accompanied by the Finance Bill 2024 that will come before parliament next week. The bill is a separate law outlining proposed tax increases on various goods and services, which critics say could cripple some sectors, including financial and internet services, transport, manufacturing and retail.</p>



<p>Ndung&#8217;u said measures in the bill are expected to bring in an extra 346.7 billion shillings in additional revenues.</p>



<p>The proposals have drawn strong resistance from the public, bankers and manufacturers, as well as from the Law Society of Kenya, which stated its views to a parliamentary committee reviewing the measures.</p>



<p>President William Ruto has said the measures are aimed at reducing Kenya&#8217;s reliance on borrowing to fund its budget.</p>



<p>Last week, the central bank governor said Kenya will use part of a $1.2 billion World Bank budget support loan to make a payment of roughly $500 million on a Eurobond maturing this month.</p>



<p>($1 = 128.0000 Kenyan shillings)</p>



<p>(Reporting by George Obulutsa; Editing by Bate Felix, Miral Fahmy, Hugh Lawson and Jane Merriman)</p>


FILE PHOTO: Kenya’s Finance Minister Njuguna Ndung’u presents the Government Budget for the 2023/24 fiscal year in Nairobi

Kenya budget sees deficit at 3.3%, seeks to protect economic recovery


<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-1604532165-820x547.jpg" alt="" class="wp-image-496333" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-1604532165-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-1604532165-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-1604532165-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-1604532165-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-1604532165-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-1604532165-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Vehicles and pedestrians make their way along a busy retail street in central Kampala, Uganda, on Wednesday, Aug. 16, 2023. Uganda&#8217;s central bank said it stands ready to act if the World Bank&#8217;s decision to halt new funding over the country&#8217;s passage of anti-LGBTQ legislation impacts the currency further. Photographer: Luke Dray/Bloomberg via Getty Images</figcaption></figure>



<p>KAMPALA, June 13 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s budget deficit&nbsp;is projected to rise to&nbsp;5.7% of gross domestic product (GDP) in the fiscal year that starts in July, up from 4.5% in the current fiscal year,&nbsp;its finance&nbsp;minister said on Thursday.</p>



<p>The economy of Africa&#8217;s biggest coffee producer has fared better than many of its peers since the COVID-19 pandemic.</p>



<p>It is expected to grow between 6.4% and 7% in the 2024/25 fiscal year, finance minister Matia Kasaija said in a budget speech.</p>



<p>&#8220;Uganda&#8217;s economy has fully recovered from the various external and internal shocks that impacted performance in the past four years,&#8221; Kasaija said.</p>



<p>The government will spend 72.1 trillion Ugandan shillings ($19.4 billion) in the next fiscal year, borrowing 8.97 trillion shillings domestically and helped by 1.4 trillion shillings in budget support, he said.</p>



<p>($1 = 3,725.0000 Ugandan shillings)</p>



<p>(Reporting by Elias Biryabarema; Writing by Hereward Holland; Editing by Alexander Winning)</p>


Ugandan Economy Following Rate Cut

Uganda sees budget deficit rising to 5.7% of GDP next fiscal year


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1325" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-scaled.jpg" alt="" class="wp-image-496289" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-820x531.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/4OOZWTKIY5LIFJQATNM7KMQ4T4-1536x994.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">A building of the Bank of Botswana is seen in the capital Gaborone in Botswana, in this November 26, 2015 file photo. REUTERS/Siphiwe Sibeko</figcaption></figure>



<p>GABORONE, June 13 (Reuters)&nbsp;&#8211;&nbsp;Botswana&#8217;s central bank lowered its key lending rate&nbsp;by 25 basis points to 2.15% on Thursday.</p>



<p>Governor Cornelius Dekop told a news conference that there was scope to ease monetary policy as the economy was forecast to operate below full capacity and not generate any demand-driven inflationary pressures.</p>



<p>The southern African country&#8217;s consumer inflation rose to 3.1% year on year in April from 2.9% in March, at the bottom end of the bank&#8217;s 3% to 6% medium-term objective range.</p>



<p>Inflation is expected to remain within the objective range in the medium term, averaging 3.6% in 2024 and 4.5% in 2025, Dekop added.</p>



<p>The central bank&#8217;s Monetary Policy Rate is based on a seven-day instrument. It was lowered to 2.40% in December, before which it had been at 2.65% for over a year.</p>



<p>(Reporting by Brian Benza; Writing by Tannur Anders; Editing by Alexander Winning)</p>


File photo of building of the Bank of Botswana in the capital Gaborone in Botswana

Botswana central bank cuts key rate by 25 basis points


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1247" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/V23ILMSJMNN2RL62T7LQBERPAI-1-scaled.jpg" alt="" class="wp-image-496274" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/V23ILMSJMNN2RL62T7LQBERPAI-1-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/V23ILMSJMNN2RL62T7LQBERPAI-1-300x183.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/V23ILMSJMNN2RL62T7LQBERPAI-1-820x499.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/V23ILMSJMNN2RL62T7LQBERPAI-1-148x90.jpg 148w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/V23ILMSJMNN2RL62T7LQBERPAI-1-768x468.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/V23ILMSJMNN2RL62T7LQBERPAI-1-1536x936.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Kenya&#8217;s Finance Minister Njuguna Ndung&#8217;u presents the Government Budget for the 2023/24 fiscal year inside the Parliament building in Nairobi, Kenya June 15, 2023. REUTERS/Monicah Mwangi</figcaption></figure>



<p>NAIROBI, June 13 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s 2024/25 budget will aim to tackle its debt while protecting its fragile economic recovery at the same time, Finance Minister Njuguna Ndung&#8217;u said on Thursday.</p>



<p>In April, the finance ministry forecast economic growth to increase to 5.5% this year from 5.6% in 2023.</p>



<p>Ndung&#8217;u is due to present the budget later to parliament.</p>



<p>&#8220;The budget today is going to emphasise on the policies that we need to strength to implement &#8230; to support that fragile growth, that fragile economic recovery,&#8221; he told reporters.</p>



<p>&#8220;We want to make sure that we revive the economy so that it can generate jobs for the youth. We want to revive the economy so that we can pay our debt. We have been buffeted by that,&#8221; he added.</p>



<p>Total public debt stands at an estimated 68% of GDP for fiscal 2023/24, and is expected to fall to 64.8% in 2024/25, according to the World Bank.</p>



<p>The East African nation sold a $1.5 billion&nbsp;international bond&nbsp;in February at premium to fund the buyback of a large portion of a $2 billion bond maturing in June.</p>



<p>Before that, investors had feared Kenya might not be able to repay the bond due to its strained public finances.</p>



<p>Kenya&#8217;s economy is largely driven by agriculture, manufacturing, transport and storage, financial and insurance services and real estate.</p>



<p>Last week, parliament approved overall spending for the year at 4 trillion shillings ($31 billion), up from the 3.75 trillion shillings the minister presented last June for the 2023/24 year. That budget was later adjusted to 3.85 trillion shillings.</p>



<p>The 2024/25 budget will be accompanied by the Finance Bill 2024, a separate law outlining revenue-raising proposals which many critics say some could cripple sectors including financial and internet services, transport, manufacturing and retail.</p>



<p>Last week, the central bank governor said Kenya will use part of a $1.2 billion World Bank budget support loan to make a payment of roughly $500 million on a Eurobond maturing this month.</p>



<p>(Reporting by George Obulutsa; Editing by Bate Felix and Miral Fahmy)</p>


Kenya’s Finance Minister Njuguna Ndung’u presents the Government Budget for the 2023/24 fiscal year in Nairobi

Kenya budget to tackle debt, protect economy, finance minister says


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-630005282-scaled.jpg" alt="" class="wp-image-496255" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-630005282-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-630005282-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-630005282-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-630005282-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-630005282-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/GettyImages-630005282-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Street scene, Dar es Salaam, Tanzania. (Photo by: Education Images/Universal Images Group via Getty Images)</figcaption></figure>



<p>DAR ES SALAAM, June 13 (Reuters)&nbsp;&#8211;&nbsp;Tanzania&#8217;s economy is forecast to grow&nbsp;even&nbsp;faster this year&nbsp;than&nbsp;in 2023, Kitila Mkumbo, minister of state in the president&#8217;s Office for Planning and Investment, said on Thursday.</p>



<p>Mkumbo told parliament that the economy was projected to grow 5.4% this year from 5.1% in 2023, which was faster than the 4.7% a year earlier.</p>



<p>Tanzania&#8217;s economy largely relies on tourism, mining, agriculture and manufacturing.</p>



<p>Mkumbo said the government expected&nbsp;the&nbsp;budget deficit in&nbsp;the coming fiscal year&nbsp;to not exceed 3% of gross domestic product.</p>



<p>Finance Minister Mwigulu Nchemba is due to present the 2024/25 (July-June) budget to parliament later on Thursday.</p>



<p>The World Bank said in March that Tanzania had sustained its economic growth&nbsp;despitethe&nbsp;increasing impact of climate change.</p>



<p>The bank said&nbsp;growth was&nbsp;due to stronger business&nbsp;confidence&nbsp;and improved trade balances which boosted aggregate demand, balancing the damaging impact of droughts and floods on household income.</p>



<p>In the last three years, President Samia Suluhu Hassan’s administration has&nbsp;undertaken&nbsp;various economic reforms with ambitions to return the country’s economic growth to the pre-pandemic real GDP growth rates of 6-7%.</p>



<p>Tanzania’s central bank raised its key interest rate to 6% in April for the quarter ending June 2024 from 5.5% in January to&nbsp;keep a lid on&nbsp;lingering inflationary pressure.</p>



<p>(Reporting by Nuzulack Dausen; writing by George Obulutsa; editing by Jason Neely and Christina Fincher)</p>


Street scene, Dar es Salaam, Tanzania

Tanzania’s GDP to accelerate to 5.4% in 2024, minister says


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="auto, (max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



<p>NAIROBI, June 13 (Reuters) &#8211; The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect African markets on Thursday.</p>



<h2 class="wp-block-heading" id="h-events">EVENTS:</h2>



<p>*Kenya, Tanzania and Uganda finance ministers present their respective 2024/25 (July-June) fiscal budgets to their parliaments.</p>



<p>*Tanzania&#8217;s finance minister presents to parliament a report giving details of its 2023 economic performance.</p>



<h2 class="wp-block-heading" id="h-global-markets">GLOBAL MARKETS</h2>



<p>Asian equities rallied on Thursday, while bond yields slid, as investors weighed cooling U.S. inflation against a more hawkish posture by the Federal Reserve.</p>



<h2 class="wp-block-heading" id="h-world-oil-prices">WORLD OIL PRICES</h2>



<p>Oil prices fell in early trade on Thursday as investors digested news that the U.S. Federal Reserve has opted against cutting interest rates in the near future, while ample U.S. crude and fuel stocks further weighed on the market.</p>



<h2 class="wp-block-heading" id="h-south-africa-markets">SOUTH AFRICA MARKETS</h2>



<p>The South African rand strengthened on Wednesday, as investors waited for collaboration signs between parties trying to form a government of national unity before lawmakers&#8217; swearing in on Friday.</p>



<h2 class="wp-block-heading" id="h-nigeria-economy">NIGERIA ECONOMY</h2>



<p>Nigeria&#8217;s President Bola Tinubu said on Wednesday economic reforms would continue despite increasing hardships that have fuelled public anger, and promised to send an executive bill to parliament soon to set a new minimum wage.</p>



<h2 class="wp-block-heading" id="h-nigeria-petroleum">NIGERIA PETROLEUM</h2>



<p>Singapore, Asia&#8217;s oil hub, will be receiving this week its first low-sulphur straight-run fuel oil (LSSR) cargo exported from Nigeria&#8217;s new Dangote refinery, according to ship-tracking data and market sources.</p>



<h2 class="wp-block-heading" id="h-kenya-markets">KENYA MARKETS</h2>



<p>Kenya&#8217;s shilling gained ground on Wednesday, boosted by dollar inflows from tea exporters and low importer hard-currency demand, traders said.</p>



<h2 class="wp-block-heading" id="h-ghana-cocoa">GHANA COCOA</h2>



<p>Ghana&#8217;s cocoa output is expected to rebound strongly next season to over 800,000 metric tons, the cocoa regulator&#8217;s chief executive said on Wednesday.</p>



<h2 class="wp-block-heading" id="h-ghana-debt">GHANA DEBT</h2>



<p>Ghana&#8217;s finance ministry said on Wednesday it has finalised a pact with the official creditor committee to formalise a debt restructuring deal agreed in January, smoothing the path to a new funding tranche from the International Monetary Fund.</p>



<h2 class="wp-block-heading" id="h-zambia-mining">ZAMBIA MINING</h2>



<p>Zambia will set up a new entity for investment and trading in minerals as it seeks to earn more from its natural resources, the Cabinet said on Wednesday after giving its approval.</p>



<h2 class="wp-block-heading" id="h-botswana-mining">BOTSWANA MINING</h2>



<p>Chinese miner MMG Ltd will invest $700 million to double production at Botswana&#8217;s Khoemacau copper mine as part of a growth strategy to secure the critical metal, an official said on Wednesday.</p>



<p>((Compiled by Nairobi Newsroom))</p>


African Markets – Factors to watch on June 13


<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-scaled.jpg" alt="" class="wp-image-496201" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/DGXHOJLFTBOPZEJ42TWSLF6634-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: Prime Minister of Rwanda Edouard Ngirente addresses Tallinn Digital Summit in Tallinn, Estonia October 10. 2022. REUTERS/Ints Kalnins/File Photo</figcaption></figure>



<p>NAIROBI, June 13 (Reuters)&nbsp;&#8211;&nbsp;Rwanda has named statistics official Yusuf Murangwa as its new finance minister, Prime Minister Edouard Ngirente said, while the foreign minister will be Olivier Nduhungirehe, its ambassador to the Netherlands.</p>



<p>The appointments were unveiled in a statement on Wednesday, along with those of ministers holding the portfolios of public service and labour, gender and family promotion and the environment.</p>



<p>Murangwa, the new finance minister, was director-general of the government statistics office, the National Institute of Statistics of Rwanda, until his appointment.</p>



<p>The statement did not say where the former occupant, Uzziel Ndagijimana, had been reassigned, however, although Nduhungirehe&#8217;s predecessor will go to the interior ministry, Ngirente said in the statement.</p>



<p>Rwanda is set to hold its presidential election on July 15.</p>



<p>(Reporting by George Obulutsa; Editing by Jamie Freed and Clarence Fernandez)</p>


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Reuters

Botswana may fall short of 4.2% growth target, cenbank official says

From Swahili to Zulu, African techies develop AI language tools

South African Markets – Factors to watch on June 18

African Markets – Factors to watch on June 18

South African rand extends gains after unity government confirmed, Fed talks ahead

Smaller African development banks Preferred Credit Status under threat, JPMorgan warns

White-led DA party joins ANC in South African unity government

South African Markets – Factors to watch on June 14

African Markets – Factors to watch on June 14

South African rand gains after reports ANC, DA struck unity government deal

Kenya budget sees deficit at 3.3%, seeks to protect economic recovery

Uganda sees budget deficit rising to 5.7% of GDP next fiscal year

Botswana central bank cuts key rate by 25 basis points

Kenya budget to tackle debt, protect economy, finance minister says

Tanzania’s GDP to accelerate to 5.4% in 2024, minister says

African Markets – Factors to watch on June 13

Rwanda appoints new finance, foreign ministers

News Tips

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